By Abigail W. Adams
Portland, Me., June 15 – NextEra Energy Partners LP priced $500 million of three-year convertible notes after the market close on Monday at par with a coupon of 0% and an initial conversion premium of 20%, according to a market source and a company news release.
Pricing came in line with talk for a fixed coupon of 0% and a fixed initial conversion premium of 20% and at the cheap end of talk for a reoffer price of par to 100.5, according to a market source.
Morgan Stanley & Co. LLC was the bookrunner for the Rule 144A offering.
The notes are non-callable.
The convertibles will be settled in cash up to the principal amount with any excess to be settled in cash, common units or a combination of both at the company’s option.
The notes will be guaranteed by subsidiary NextEra Energy Operating Partners LP.
In connection with the offering, the company entered into capped call transactions with a cap price of $113.13.
Net proceeds are expected to be $498.6 million.
Proceeds will be used to cover the cost of the call spread and to fund a portion of the previously announced acquisition of a portfolio of wind projects.
NextEra Energy is a limited partnership that manages clean energy projects.
Issuer: | NextEra Energy Partners LP
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Guarantor: | NextEra Energy Operating Partners LP
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Amount: | $500 million
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Greenshoe: | None
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Securities: | Convertible senior notes
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Maturity: | June 15, 2024
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Bookrunner: | Morgan Stanley & Co. LLC
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Coupon: | 0%
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Price: | Par
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Yield: | 0%
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Conversion premium: | 20%
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Conversion price: | $90.5043
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Call options: | None
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Pricing date: | June 14
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Settlement date: | June 17
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Distribution: | Rule 144A
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Talk: | Fixed coupon of 0%, fixed initial conversion premium of 20% and reoffer price of par to 100.5
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Stock symbol: | NYSE: NEP
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Stock price: | $75.42 at market close June 14
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Market capitalization: | $5.72 billion
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